According to the Fair Labor Standards Act (FLSA), most employees
begin earning overtime once they've worked more than 40 hours in a
week. Employees must be paid at least time and a half their regular
pay rate for each hour of overtime they work. However, even with
these FLSA guidelines, many employers still miscalculate their
employees' overtime pay.

What is
included when calculating overtime pay?

Under the FLSA, employers must take the following factors into
consideration when calculating overtime pay:

Bonuses: The FLSA states that non-discretionary
bonuses must be included in the regular rate of pay.
Non-discretionary bonuses are bonuses given to employees to
encourage them to work more steadily, rapidly, or efficiently and
bonuses designed to encourage employees not to leave the
company.

Shift Differentials: Shift differentials, or
varying pay rates, must also be included when calculating overtime
pay. For example, if a nurse works one twelve-hour day shift for
$10 per hour and two twelve-hour night shifts for $15 per hour,
both pay rates must be taken into account when calculating their
overtime pay rate.

Different Jobs: If an employee works more than one
job at a company at different pay rates, all pay rates must be
included when calculating their overtime rate. For example, if an
assistant works during the week for $20 per hour and also works on
the weekends responding to online customer reviews for $15 per
hour, both rates of pay have to be taken into account.

What is
not included when calculating overtime pay?

The following factors do not need to be taken into consideration
when calculating overtime rates:

Money paid as gifts for the holidays, birthdays, or other
special occasions

Premium payments for overtime or holiday/weekend work

Life insurance or health benefits

Travel expenses, laundering costs, and supply/material
purchases

Sick or vacation pay

Previous
miscalculated overtime settlements

Numerous miscalculated overtime class action lawsuits have
settled over the past several years.

Alliance Residential LLC: In August 2012, Alliance
Residential LLC agreed to pay $1 million to settle class action
claims that the company systematically miscalculated the overtime
rate for hundreds of its workers.

Universal Alloy Corp.: In May 2014, aircraft
manufacturer Universal Alloy Corp. agreed to pay up to $4.75
million to resolve a class action lawsuit brought by workers who
accused the company of miscalculating their overtime payments.

Western Stone & Metal Corp.: In July 2015,
jewel retailer Western Stone & Metal Corp. received approval to
pay $650,000 to settle a class action with retail store workers
alleging that the company miscalculated their overtime pay.

If you believe your employer has miscalculated your overtime
pay, contact Berger & Montague. You may be able to file a class
action lawsuit.

Do I
have to pay to consult with an attorney?

We are happy to talk with you about your potential claims free
of charge. If we decide to represent you in a lawsuit, we will
enter into a written contingent fee agreement with you. A
contingent fee agreement means we only get paid if we win, and that
we will receive our fees from the amount paid by the Defendant in
the case.

Please contact us to discuss the details of your case. You
may:

Use the contact form on this page ("Inquire About Your
Potential Case")